California Real Estate Headline Roundup

Posts Tagged ‘Standard & Poor’s’

Today’s News Synopsis:

Mortgage rates took a turn this week by showing signs of increase with 30-year rates now at 3.66% and 15-year rates at 2.98%. Unemployment claims decreased this past week to their lowest in 15 years at 265,000. Homeownership is at its lowest in 20 years, having decreased to 64%.

“Standard & Poor’s may complete a $1.37 billion settlement with regulators over accusations it knowingly inflated its ratings of risky mortgage investments during the run up to financial crisis as early as Monday.”

“Nobody wants to see a repeat of the previous housing bubble. Lenders, loanowners, and the politicians that pander to them all celebrate the reflation of the old bubble, but they hope it’s done on stable terms this time around to prevent a major crash.”

“Pending home sales fell a very steep 3.7% in December, according to the National Association of Realtors. All major regions experienced declines in December and this was the second worst monthly drop since May 2010.”

“A new policy issued by the Federal Housing Administration (FHA) on Thursday under its Home Equity Conversion Mortgage (HECM) Program will allow reverse mortgage lenders to delay calling HECMs from a surviving non-borrowing spouse following the death of the last surviving borrower.”

Looking Back:

The Mortgage Bankers Association reported a decrease in mortgage applications by 0.2%. The amount of foreclosure inventory decreased by 31% according to the latest report from CoreLogic. Federal Reserve Chairman Ben Bernanke’s term term ran out.

Today’s News Synopsis:

Mortgage rates decreased again according to Freddie Mac with 30-year rates now at 3.8% and 15-year rates at 3.09%. The HUD program is facing delays again after Secretary Julian Castro said funding towards the program is holding people back from owning homes. Insurance policies totaling $155 million was just taken care of by Freddie Mac in order to help decrease liability for taxpayers.

In The News:

“Mortgage rates have hit a fresh low for the year. The average for a 30-year fixed loan fell to 3.80% this week, down from 3.93% a week earlier, mortgage company Freddie Mac said Thursday. Lenders, meanwhile, offered a 15-year fixed mortgage at 3.09%, compared to 3.20% last week.”

“As part of its continuing effort to limit the American taxpayers’ liability, Freddie Mac obtained a number of insurance polices designed to cover almost $155 million in potential losses from a pool of single-family loans acquired in the third quarter of 2013.”

“Twenty-seven senators have signed a letter addressed to Federal Housing Finance Agency (FHFA) Director Mel Watt asking him to reconsider the stricter membership requirements for the Federal Home Loan Banks the Agency proposed in September.”

“The U.S. Housing and Urban Development (HUD) Secretary Julián Castro has responded to HUD’s 2015 budget of $45 billion stating that while it does help some of its initiatives, the funding limits the goal of homeownership for some American families.”

“Ocwen Financial Corp. (OCN) is being examined over whether it improperly stalled short sales by borrowers who owe more than their homes are worth, according to two people briefed on the case, as troubles deepen for the mortgage servicer whose stock has slumped 60 percent this year.”

Looking Back:

The NAHB reported builder confidence for new single-family homes increased by four points to 58. The increase in home prices led to 791,000 properties being brought out of negative equity, although 6.4 million remained underwater. The FHFA reported HARP refinances decreased in the third quarter to less than 900,000 despite the increase in interest rates.

Today’s News Synopsis:

Bill Cosgrove, who will be featured on the panel for I Survived Real Estate 2014, spoke at the MBA’s 101st Annual Convention & Expo about Dodd-Frank to the future of America’s housing. A bank in Maryland recently closed its doors after three months of no bank failures. Foreclosures in California are at their lowest in 9 years with only 16,883 completed, down 17% from the previous year.

In The News:

“Bill Cosgrove, Chairman of the Mortgage Bankers Association (MBA) today delivered the following remarks at the association’s 101st Annual Convention and Expo in Las Vegas, NV.

“For the third time this year, nationwide housing starts surpassed the million-mark, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.”

“Federal Housing Finance AgencyDirector Met Watt and U.S. Secretary of Housing and Urban DevelopmentJulian Castro announced their plans to address some of the housing finance industry pain points in what MBA CEO David Stevens called “extremely positive” policy steps.”

“Most borrowers who defaulted on debts during the recession waited anxiously for their lenders to come after them for the bad debt. When lenders didn’t pursue collection on bad debts at the time, most borrowers blithely assumed they no longer owed this money, but most often that isn’t the case.”

“While the majority of the country experience a rise in foreclosures, California saw a record-low during the third quarter. Lenders initiated formal foreclosure proceedings last quarter with the lowest number of California homes in almost nine years, according to the latest CoreLogic DataQuick report.”

“After nearly three months without a failure, another FDIC-insured institution went down last week. The Office of the Commissioner of Financial Regulation in Maryland shut down NBRS Financial, based in Rising Sun, appointing FDIC as receiver, according to dual releases from both agencies.”

Today’s News Synopsis:

Despite a decrease in average gross ROI and profit, California is still fourth on the list of states leading home flipping. Freddie Mac saw a drop in their serious delinquency rate by 2% last August. Different organizations, including the Federal Reserve Board and BofA Merrill Lynch Global Research, continue to debate over whether or not mortgage credit is loosening.

In The News:

“Affordability is no longer a compelling motivator for first-time homebuyers, according to a new report from Credit Suisse. Due to the combination of higher mortgage insurance costs, higher interest rates and higher home prices, affordability is back to the long-term averages for first-time buyers.”

“Despite seeing a decline in average gross ROI and average gross profit on flipped homes, California still ranked fourth among the 50 states and District of Columbia in flipped homes as a percentage of total sales in Q2, according to RealtyTrac.”

“The growing battle between the FHA and the lending industry could soon impact home sales and refinancing nationwide, a contest to win both hearts and minds not to mention loan originations worth billions of dollars.”

“In the 60 years between World War II and the housing bust, each generation obtained an education, secured a job, got married, and bought a home in the suburbs, enshrining our nostalgic notions of the American Dream. Unfortunately, lenders destroyed all that.”

“Freddie Mac followed the lead of its sister government-sponsored enterprise, Fannie Mae, and reported a serious delinquency rate of less than 2 percent for August in its recently-released August 2014 Monthly Summary.”

Today’s News Synopsis:

Aaron Norris of The Norris Group gives some highlights from the news of the week in this week’s real estate headline roundup. Zillow believes the increasing mortgage rates could have a negative impact on home sales by leading to fewer sales. Morgan Stanley just reached a settlement with the Securities and Exchange Commission who said they were not honest about a pair of mortgage bonds they sold during the financial crisis. The latest Standard and Poor’s report showed rating for private mortgage insurers is expected to remain strong despite changes to the FHFA rules.

In The News:

“Having weathered a soft patch that lasted through the fall, winter and early spring, housing markets are showing signs of a rebound that should continue for the rest of the year, according to the latest forecast by economists at Fannie Mae.”

“I recently wrote that higher mortgage interest rates would either slow sales or cause house prices to drop. Since most real estate analysts still consider declining home prices impossible, when forced to pick between the two potential outcomes, they pick slower home sales.”

“Spending on non-residential construction in the U.S. will be less than initially projected as state and local governments scale back investments in such properties as schools and health-care buildings, the American Institute of Architects said.”

“Private mortgage insurers are forecasted to maintain strong ratings in the immediate term, following the Federal Housing Finance Agency’sdecision to revise its private mortgage insurance requirements and reduce credit risk to Fannie Mae and Freddie Mac, according to a report from Standard & Poor’s Rating Services.”

Looking Back:

Jobless claims increased by 7,000 to 343,000 in the past week. Mortgage rates fell again and were at their lowest in three weeks with 30-year rates at 4.31% and 15-year rates at 3.39%. Some good news: Five markets in the U.S. were fully recovered, bringing the total for recovered homes to 19.

Today’s News Synopsis:

The NAHB saw a major accomplishment this week when the Supreme Court ruled the EPA cannot require pre-construction permits for greenhouse gasses emitted on multifamily and commercial homes. According to the latest National Association of Realtors report, pending home sales increased 6.1% month-over-month but decreased 5.2% year-over-year. In a unique news story, a 91-year old woman bought a house for the first time in her life.

In The News:

“In a major victory for NAHB, the U.S. Supreme Court today ruled that the Environmental Protection Agency (EPA) does not have the authority to require multifamily and commercial builders to obtain costly pre-construction permits for greenhouse gasses emitted from the buildings they construct.”

“U.S. Bancorp (USB) has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration that did not meet applicable requirements, the Justice Department announced Monday.”

“Analyzing data from the United States Census, Trulia’s chief economist Jed Kolko found that the population growth of millennials in big, dense cities was outpaced by big-city suburbs and lower-density cities.”

“The number of homes that went under contract in May leaped from the previous month as lower mortgage rates and growing home inventory stimulated buyer activity, according to a report from the National Association of Realtors.”

“The government of New York is taking further steps to try to stem the tide of foreclosures that still lingers in the Empire State today. New York Attorney General Eric T. Schneiderman announced the launch of the New York State Mortgage Assistance Program, or NYS MAP, which will provide targeted small loans to families with the aim of helping them avoid foreclosure.”

Today’s News Synopsis:

Existing home sales increased by an impressive amount last month with the increase in inventory and improving prices. Existing home sales increased 4.9% month-over-month and are now at 4.89 million. The number of failed banks now stands at 11 with the closure of two subsidiaries of River Valley Bancorp. Inventory for homes increased 11.8%, although most of the homes were purchased by the middle class.

“U.S. Treasury Secretary Jacob J. Lew will announce expanded programs to help struggling mortgage borrowers on June 26, marking the fifth anniversary of government efforts to aid the real-estate market, the Treasury Department said.”

“Existing-home sales posted strong gains in May as increasing inventory continued to temper price growth and the market showed signs of bouncing back from a lackluster first quarter, the National Association of Realtors reported today.”

“Here’s a quick and easy way to sell more houses and raise real estate values: Just reduce credit requirements for mortgages and the whole country will be on its way to a housing rebirth of unprecedented size and power.”

“After plunging throughout 2012 and for much of 2013, and rising only modestly through the beginning of this year, the inventory of all for-sale homes nationwide spiked in May, jumping 11.8% year-over-year according to Zillow.”

Today’s News Synopsis:

Mortgage default rates decreased to 1.11%, the lowest recorded since the recession according to the latest index from Standard & Poors. According to the latest Realty Trac report, countries with one in five homeowners underwater are inhabited by almost 1/3 of Americans. The total number of people underwater is at about 9.7 million, while more first-time homebuyers are underwater compared to higher-priced homes.

“Homes that are affordable to first-time homebuyers are more likely to be underwater than homes in higher price ranges, exacerbating inventory shortages in many markets because their owners are unwilling or unable to pull off a short sale or bring cash to the closing table.”

“Citigroup Inc. (C) is seeking to reverse the contraction of its U.S. mortgage business, partly by increasing purchases of home loans from other firms, according to Jane Fraser, who oversees the lending.”

“Nearly a year after a tornado devastated the town of Moore, Oklahoma, foreclosure activity is slowly dwindling in the area, specifically in Oklahoma City, Oklahoma. RealtyTrac found that bank repossessions spiked 58 percent in the four months following the tornado but are pulling back as the area experiences recovery.”

Looking Back:

The OCC announced that as of May 16 over 2.4 million foreclosure review checks valued at $2.2 billion were cashed. The Center for Responsible Lending expressed objection to H.R. 1077 (Consumer Mortgage Choice Act) citing it would force borrowers to take out more expensive loans and lead to higher loan costs and fees. The NAHREP said immigration could be a big contributing factor to helping the housing market grow.

Today’s News Synopsis:

The Mortgage Bankers Association reported mortgage applications decreased 1.2% from last week. New criteria for RMBS qualified and non-qualified mortgages has been finalized by Fitch. Twenty-nine state housing finance agencies have been awarded $63.1 million by NeighborWorks America to help families and individuals in danger of foreclosure.

In The News:

“Banking associations, leading financial institutions and now a number of House Republicans are coming out with grave concerns and – in the case of some big banks – outright if still quiet opposition to a comprehensive tax overhaul being proposed by the head of the House Ways and Means Committee.”

“Fitch Ratings announced it has finalized its criteria for analyzing loans securing U.S. residential mortgage-backed securities (RMBS) under the new qualified mortgage (QM) and Ability-to-Repay rule (the Rule) recently adopted by the Consumer Financial Protection Bureau (CFPB).”

“NeighborWorks America announced Tuesday in a press release that $63.1 million had been awarded to 29 state housing finance agencies, 18 HUD-approved housing counseling intermediaries, and 67 community-based NeighborWorks organizations.”

“Different regions will offer diverging levels of negotiating power for buyers and sellers across the country heading into the spring homebuying season, signaling advancement toward a healthier housing market where market conditions tend to be local rather than national, according to a recent analysis by Zillow.”

Looking Back:

The U.S. Census Bureau reported the number of housing starts increased 0.8% to 917,000 the previous month. 200,000 homes were brought out of negative equity in the fourth quarter of 2012, bringing the total over the whole year to 1.7 million. Edward DeMarco announced he would like to see the GSEs slowly dissolved over the next five years.

Today’s News Synopsis:

Fixed mortgage rates increased again for the fourth week in a row with 30-year rates now at 4.37% and 15-year rates at 3.39%. Bank of America is facing an investigation by the U.S. Attorney’s Office over their participation in the FHA’s Direct Endorsement Program. The Treasury Department will receive $10.4 billion from Freddie Mac next month as a return for helping bail them out back in 2008.

In The News:

“Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. posted the 17th quarterly increase since 2009 due to an $8.1 billion decline in loan-loss provisions in the fourth quarter of 2013.”

“Bank of America is facing a federal probe into its participation in a government housing program. The U.S. Attorney’s Office is investigating the lender’s compliance with the requirements of the Federal Housing Administration’s Direct Endorsement Program, according to a Reuters report.”

“For Richard Cordray, the equation is simple: In the Land of the Free and the home of the free market, American citizens should be as informed about and capable of self-governance in their personal finances as they are in the democratic process, especially when it comes to borrowing for a mortgage.”

“The last time Janet Yellen testified before lawmakers, stocks rallied. Now, she’s back. The head of the Federal Reserve is testifying before the Senate Banking Committee on Thursday. Originally scheduled for two weeks ago, the hearing was postponed due to a snow storm in Washington.”

“Freddie Mac (FMCC), the U.S.-owned mortgage financier, will return $10.4 billion to the Treasury Department next month, bringing total payments to about $10 billion above what it got in aid after the 2008 credit crisis.”

Bruce Norris of The Norris Group will be presenting his newest talk Secrets to Becoming Wealthy with NorcalREIA on Wednesday, March 12, 2014.

Bruce Norris of The Norris Group will be presenting his newest talk Secrets to Becoming Wealthy with OCREIA on Thursday, March 13, 2014.

Looking Back:

The Mortgage Bankers Association reported mortgage applications decreased 3.8% from the previous week. Pending homes sales increased 4.5% the previous month to their highest level in almost 3 years. Federal Reserve chairman Ben Bernanke spoke to the House Committee regarding changes to QRM standards and other issues with housing.